Question
A company issues a 10 year, callable bond at par with 8% annual coupon payments. The bond can be called in four years, or any
A company issues a 10 year, callable bond at par with 8% annual coupon payments. The bond can be called in four years, or any time after that, on a coupon payment date. The call price is $105 per $100 of face value. Which is closest to the yield to call?
| A. | 9.09% | |
| B. | 9.25% | |
| C. | 9.88% | |
| D. | 12.00% |
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Multinational financial management
Authors: Alan c. Shapiro
10th edition
9781118801161, 1118572386, 1118801164, 978-1118572382
